Shares of Canadian Solar (CSIQ) fell more than 3 percent Friday to $9.97. The manufacturer of solar cell and solar module products slid 14.25%, or $1.69 per share, on June 2 after the co. disclosed that it was postponing the release of its Q1 financial performance ended March 31, 2010, as a result of an investigation by the Securities and Exchange Commission [SEC].
Canadian Solar also disclosed, during afterhours trading on Tuesday, that it had received a subpoena from the SEC requesting documents from the company relating to, among other things, certain sales transactions in 2009. As a result of this admission, CSIQ shares have lost value since June 2 on unusually heavy volume and heightened volatility.
Additionally, on June 3, 2010 Glancy Binkow & Goldberg LLP filed a class action lawsuit in the US District Court for the Southern District of New York against Canadian Solar, charging the Markham-based co. and certain of its execs with violations of federal securities laws.
It’s difficult to say to what extent such negative news will continue to affect CSIQ shares, but in most cases it’s certainly a big weight for awhile.
In April investment advisory service Macquerie Capital cut its CSIQ rating from Outperform to Neutral following the co.’s guidance in which they indicated currency exchange losses and margin contraction.
CSIQ lost $0.36, or 3.54%, to $9.82 rtq. at 12:34 E.T. in Nasdaq composite trading.